UAE economy solid, including Dubai

October 21, 2009

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By , ABU DHABI, Oct 21 – President Khalifa bin Zayed al-Nahyan said on Wednesday that the economy of the United Arab Emirates was strong, including that of worst-hit emirate Dubai, despite the global recession.

"Despite its negative effects, the global economic crisis has demonstrated the strength of our economy," Sheikh Nahyan said in a speech at a new opening of the UAE consultative assembly, the Federal National Council.

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While Abu Dhabi, which holds almost all UAE oil reserves, has managed to withstand the worst of the crisis, Dubai\’s booming economy has slowed, buckling under the weight of 80 billion dollars (53.7 billion euros) in debt.

"Our economy is complementary, headed by the federation … which organises all aspects of our lives and which takes on all the challenges we face," said Nahyan, who is also ruler of Abu Dhabi.

Earlier this year, speculation mounted that the emirate of Abu Dhabi sought to lay hands on several ailing companies in Dubai.

But the UAE president intervened to assert that the two emirates needed to cooperate face the crisis.

In order to meet its debt obligations, Dubai announced in February plans to issue treasury bonds worth 20 billion dollars, half of which were fully subscribed by the UAE central bank.